Local flour importer, Sheik Lisha wants the government to look at custom duties on flour.
Managing Director Azad Akaloo told Guardian Media that due to the pandemic the international price of flour has increased along with freight prices.
Shiek Lisha is currently importing flour which has 25 per cent duties and various types of pasta, and as a flour product cost the company 60 per cent in custom duties.
“For the last few months, we had our price above National Flour Mills products, we went up by 13 per cent, I could not sell at the old price and we made a decision that we would sell our flour at the higher price due to the international cost of the product, we could not maintain it even if we wanted to please the consumer,” Akaloo said.
He said we pride our product on high quality as it is unbleached and does not have bromate.
Akaloo continued, “The price with NFM is selling their flour is still less than what they are paying for and I can tell you, they have other products that can buffer their sales and this will price us out the market and it can affect our overall business.”
Sheik Lisha has been in existence since 1954 and started importing flour a few years now.
“Most of the wheat prices in the world has gone up, we are now seeing increases as much as US$60 to US$70 dollars on the tonne. This compounded with freight prices that have skyrocketed due to the pandemic that increased to over 110 per cent...we would normally pay US$3,000 dollars for a container and that has now doubled, so we are at a loss all around and it will be difficult as some of the cost will be carried down on the end consumer.”
He continues, “If the Government sit with importers we can have a solution that will continue to make food affordable for all in Trinidad and Tobago. We urge the Government to also look at reducing customs duties and we suggest that the cost be decreased from 25 per cent to 10 per cent this will see some real savings on for the consumer.”
National Flour Mills announced its plans to increase the wholesale price of flour in Trinidad and Tobago by between 15 per cent and 22 per cent, effective January 3.
The suggested increase will average 19 per cent on the retail price of flour to the consumers.
The Ministry of Trade and Industry (MTI) said it would work with NFM to explore possible avenues to see how and where other costs could be eliminated to maintain commercial viability.
Sheik Lisha’s Managing Director noted these increases by NFM will not last as the prices keep increasing due to famine and other factors especially with the pandemic affecting the price.
Akaloo noted that he expects the prices to go up again very soon and the consumer will face the brunt of the increase.
